• Price Discrimination
• Penetration Pricing •
Pricing Strategies in Marketing
Pricing strategy is an important component of the marketing mix. It is used to maximize profits while maintaining customer satisfaction. Common pricing strategies include premium pricing, penetration pricing, and economy pricing.
pricing strategies in marketing
Price Skimming - Setting a high initial price for a product to maximize profit, gradually lowering the price as competitors enter the market.
Bundling - Offering a combination of products or services for a single price.
Price Discrimination - Charging different prices to different customers for the same product or service.
Did you know?
In the US, companies on average spend 12-20% of their revenue on marketing. Market segmentation is a marketing strategy to divide consumers into sub-groups based on shared characteristics. Coffee giant Starbucks is known to charge more to customers who stay in the store longer.
Work together in pairs: What is the advantage of using penetration pricing as a pricing strategy in marketing?
What are the different pricing strategies that businesses can employ to maximize their profits and gain a competitive advantage in the market?
Work together in pairs: What are the advantages and disadvantages of using a penetration pricing strategy in marketing?
Brain break: Draw a silly imaginary creature that has a combination of your favorite animal features!
Which pricing strategy involves setting a high initial price to attract customers who are willing to pay a premium?
- Skimming pricing
- Cost-plus pricing
- Penetration pricing
What is the main goal of a penetration pricing strategy?
- To maximize profit margins
- To target niche markets
- To quickly gain market share
Which pricing strategy involves offering multiple products or services as a bundle at a discounted price?
- Psychological pricing
- Premium pricing
- Bundle pricing
What is the concept behind psychological pricing?
- Offering discounts for bulk purchases
- Setting prices based on production costs
- Influencing consumer perception through strategic prices
Which of the following is an example of value-based pricing?
- Setting prices based on competitors' prices
- Pricing based on perceived customer value
- Using historical sales data to determine prices